Mechanism

Frequency-Dependent Selection

TL;DR

Marginal value optimization works best when you're among the first to implement.

Competition & Equilibrium

Satellite strategy is powerful but not infinitely scalable. Attempting to grow beyond natural carrying capacity forces either abandoning satellite approach or triggering competitive response.

In frequency-dependent selection, a strategy's success depends on how common it is in the population. Rare strategies often outperform common ones because they exploit underused resources. This creates the foraging paradox: when everyone optimizes using the same approach, the 'optimal' patch becomes depleted through competition.

Business Application of Frequency-Dependent Selection

Marginal value optimization works best when you're among the first to implement. Being contrarian - serving 'suboptimal' customers well - can be optimal when everyone else abandons them. The meta-strategy: optimize one level deeper than competitors.

Frequency-Dependent Selection Appears in 4 Chapters

Rare foraging strategies often outperform common ones because they exploit underused resources - the meta-strategy is to optimize one level deeper than competitors.

Frequency dependence in foraging →

Forest canopy competition demonstrates frequency-dependent equilibrium - trees stop gaining advantage from additional height when all competitors match their growth.

Frequency-dependent growth limits →

Dishonest signaling is profitable when rare but collapses when common, creating stable polymorphism of honest and dishonest signalers in equilibrium.

Frequency-dependent deception →

Ruff males maintain 60/30/10 strategy mix because each strategy's success is inversely related to its frequency in the population.

Territorial strategy equilibrium →

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